TENSIONS BETWEEN NEOLIBERALISM and the PROVISION of HOUSING Through the Lens of Spain and the Cases of Diagonal Mar and 22@ in Barcelona
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TENSIONS BETWEEN NEOLIBERALISM AND THE PROVISION OF HOUSING Through the lens of Spain and the cases of Diagonal Mar and 22@ in Barcelona Urban Planning and Management | Aalborg University | June 2016 Supervisor | Daniel Galland Estel Escribà Piró Tensions between neoliberalism and the provision of housing Aalborg University Cover photos: Estel Escribà Places: Diagonal Mar and Poblenou ii Tensions between neoliberalism and the provision of housing Aalborg University Title: Tensions between neoliberalism and the provision of housing, through Abstract the lens of Spain and the cases of This research takes its point of departure in the Diagonal Mar and 22@ in Barcelona context of an increased difficulty to access to affordable housing as well as high level of commodification of housing and urban space due Education: MSc Urban Planning and to imperative forces of neoliberalism. Therefore, Management using the effects of neoliberalism as an analytical lens with which to examine contemporary urban Project period: February 2016 – and community struggles to access to affordable June 2016 housing allows to enlighten how neoliberalism is affecting the right to the city. Spain is a relevant example to study as while Project theme: Master’s thesis neoliberalism was being set up in the western countries, Spain was facing a dictatorship period that led to a retarded instauration of neoliberal No. of participants: 1 policies. Consequently, it is relevant to study the link between the political history of Spain and the historical shortfall of social housing. The research is conducted through three different analyses. The first analysis shows how ____________________________ neoliberalism has shaped the policies as well as the provision of housing in Spain, revealing five Estel Escribà Piró neoliberal different trends like the promotion of homeownership, the easy access to credit, the decentralization of the state and promoting housing expansion policies to overcome the crisis considering housing as an investment. The Supervisor: second analysis exposes the neoliberal signs in Daniel Galland the development of two case studies, Diagonal Mar and 22@ and how these signs affected the provision of social housing. The analysis reveals Copies: 2 that even though both developments are No. of pages: 91 influenced by neoliberal trends and Diagonal Mar Day of hand in: 02/06/2016 has no social housing, thanks to the local associations’ involvement, the provision of social housing could be improved in 22@. The third analysis, takes into account the previous analyses focusing on the rationales that have challenged the right to the city through the housing perspective. The outcome shows that the right to the city is challenged through two different levels of rationales, from endogenous rationales – the one attached to the historical institutional and regulatory framework and endogenous rationales – related to the case-context. iii Tensions between neoliberalism and the provision of housing Aalborg University Preface This report is the final thesis project of the Master Programme in Urban Planning and Management at Aalborg University. All of the work presented henceforth was carried out in Copenhagen and Barcelona. The research as well as writing have been conducted from 1st February until 1st of June of 2016. The report examines the effects of neoliberalism in housing policies, focusing in the Spanish policies and analysing two cases located in Barcelona: Diagonal Mar and 22@. The references in this report are cited according the Chicago style (author’s surname and the year of publication). The sources that have the same author and year of publication are distinguished adding a letter at the end of the annotation. The complete list of references and the corresponding sources could be find in the bibliography list at the end of the report. Abbreviations are given in parenthesis after introducing the complete term the first time. In addition, as many Spanish words are used, first the English translated term is written followed by the actual Spanish term in brackets and italics. I would like to express my most sincere gratitude for the advice and support of my supervisor, Daniel Galland, who has been really encouraging during the whole process giving suggestions and constructive critical feedback. Aalborg University. June 2rd, 2016 iv Tensions between neoliberalism and the provision of housing Aalborg University Table of contents Introduction .................................................................................................... 6 1.1 Background .................................................................................................... 6 1.2 The research focus......................................................................................... 7 1.3 Structure of the research report ..................................................................... 7 Research Question ........................................................................................ 9 Methodology ................................................................................................ 10 3.1 Case study as the overall research strategy ................................................ 10 3.1.1 Unit of analysis ................................................................................................................... 10 3.1.2 Data collection ................................................................................................................... 11 3.1.3 Constructing validity ........................................................................................................... 13 3.2 Research Design .......................................................................................... 13 3.3 Limitations of the methodology of the research ........................................... 18 Theoretical context and theoretical concepts .............................................. 19 4.1 Neoliberalism ............................................................................................... 19 4.1.1 Neoliberalism forces influencing Western Countries’ economy........................................ 19 4.1.2 The different phases of neoliberalism and its consequences........................................... 20 4.2 The right to the city ....................................................................................... 21 4.2.1 What is the right to the city? ............................................................................................... 22 4.2.2 Housing and the right to the city ........................................................................................ 25 4.3 Analytical Framework ................................................................................... 28 4.3.1 The neoliberal signs ........................................................................................................... 28 Neoliberalism and the provision of housing in Spain .................................. 30 5.1.1 Neoliberalism in Spain ....................................................................................................... 30 5.2 Housing policies in Spain ............................................................................. 34 1 Tensions between neoliberalism and the provision of housing Aalborg University 5.3 Reflection on the neoliberal signs of the Spanish housing sector ............... 38 5.3.1 The rental market evolution – promoting homeownership ................................................ 38 5.3.2 Credit easiness .................................................................................................................. 38 5.3.3 Decentralization of the state .............................................................................................. 39 5.3.4 Promote housing expansion policies to overcome crisis – Housing is considered as an investment. .................................................................................................................................. 39 The analyses of Diagonal Mar and 22@ ..................................................... 40 6.1 Sant Martí District– the context .................................................................... 40 6.1.1 History of the district .......................................................................................................... 41 6.2 The Olympic Games in Barcelona – the development of a “Model”............ 43 6.3 Diagonal Mar – pla parcial diagonal mar 1998-2001 ................................... 47 6.3.1 Introduction to Diagonal Mar ............................................................................................. 47 6.3.2 The intensification of interlocality competition ................................................................... 47 6.3.3 Uneven geographical development .................................................................................. 49 6.3.4 Shift in the activities – towards knowledge-based industries ........................................... 51 6.3.5 Shift in the governance ...................................................................................................... 51 6.3.6 Downscale of the welfare state .......................................................................................... 52 6.4 22@development ........................................................................................ 54 6.4.1 Intro to 22@ ......................................................................................................................